Factbox: Australia pushes critical minerals processing industry

Strategic Metals

25/11/2022 06:08

MELBOURNE, Nov 25 (Reuters) - The Australian government
said on Friday it was seeking investment from allies to develop
its processing industry for minerals like lithium and rare
earths that are critical to the energy transition and defence. 
    Resource Minister Madeleine King flagged key sector
developments in a speech in Sydney on Friday.  
    LITHIUM HYDROXIDE PROCESSING PLANTS
    In operation, construction or advanced planning in Western
Australia:
    * Tianqi Lithium Energy Australia's lithium hydroxide
refinery at Kwinana, a joint venture between China's Tianqi
Lithium  002466.SZ , with a 51% stake, and Australian miner IGO
Ltd  IGO.AX . with 49%, is set to produce 24,000 tonnes a year
by end 2023.
    * The MARBL refinery at Kemerton, a 60:40 joint venture
between U.S. producer Albemarle Corp  ALB.N  and Australia's
Mineral Resources  MIN.AX , will produce 50,000 tonnes a year
once fully operational.
    * Covalent Lithium's proposed refinery at Kwinana is set to
produce 50,000 tonnes a year starting up from 2024. It is
jointly owned by Chile's Sociedad Química y Minera de Chile S.A.
(SQM)  SQMA.SN  and Australia's Wesfarmers Ltd  WES.AX .
    RARE EARTHS PROCESSING
    Australia is only involved in very early stages of
processing rare earths, an industry dominated by China.
    * Top global exporter Lynas Rare Earths  LYC.AX  is building
its Kalgoorlie cracking and leaching plant in central Australia.
    * Hastings Technology Metals  HAS.AX  is also constructing a
cracking and leaching plant, Yangibana, in Western Australia.
Project financing is underpinned by a supply agreement with
Germany's Thyssenkrupp  TKAG.DE .
    * Iluka Resources Ltd  ILU.AX  is establishing its Eneabba
Rare Earths Refinery Project in Western Australia that will help
move further downstream to the production of rare earth oxides.
    The Australian Government has approved a A$1.25 billion 
($847 million) loan to support the project through its Critical
Minerals Facility. The refinery will be able to process multiple
rare earth feedstocks – creating a market opportunity for other
rare earth projects, such as that of Northern Minerals  NTU.AX .
    * Australian Strategic Metals  ASM.AX  is also supporting
supply chain diversification through the development of its
Dubbo rare earths project in New South Wales, which will be
processed in South Korea. 
    * Arafura Resources  ARU.AX  has supply agreements with
General Electric  GE.N , Hyundai Motor  005380.KS  and Kia Corp
 000270.KS  from 2025.
    ($1 = 1.4765 Australian dollars)
 (Reporting by Melanie Burton; Editing by Kenneth Maxwell)
 ((melanie.burton@thomsonreuters.com Twitter: @MelanieMetals;
+613 9286 1421; Reuters Messaging:
melanie.burton.thomsonreuters.com@reuters.net))